Here's Why I Bought This Unloved High-Yield Stock
Benjamin Graham, the man who helped train Warren Buffett, described Wall Street as Mr. Market, a partner that was prone to fits of enthusiasm and despair. A key goal, according to Graham, was to buy good companies when Mr. Market was downbeat so you could get a bargain price on the stock.
That's what I think is going on with Unilever (NYSE: UL) today. Here are five reasons I just bought the stock.
I'm a dividend investor, and one of my key valuation tools is relative dividend yield. Essentially, I'm looking for companies that have historically high yields that seem out of line with business fundamentals. Right now Unilever's dividend yield is roughly 4.4%. That happens to be the highest the stock has offered since the 2007 to 2009 recession. This was what got me interested in this consumer staples giant, but not what actually made me buy it.
Source Fool.com
